2. Disclaimer
”This presentation may contain statements that express management’s expectations about future events or results rather than historical facts. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements, and CVRD cannot give assurance that such statements will prove correct. These risks and uncertainties include factors: relating to the Brazilian economy and securities markets, which exhibit volatility and can be adversely affected by developments in other countries; relating to the iron ore business and its dependence on the global steel industry, which is cyclical in nature; and relating to the highly competitive industries in which CVRD operates. For additional information on factors that could cause CVRD’s actual results to differ from expectations reflected in forward-looking statements, please see CVRD’s reports filed with the Brazilian Comissão de Valores Mobiliários and the U.S. Securities and Exchange Commission.”

3. Agenda Performance highlights Fund raising and cost of capital
Macroeconomic and business outlook

4. Performance highlights

5. 2Q03 Highlights
Top-line (+14.5% yoy) and bottom-line growth (+US$ 470 million yoy)
Strong cash generation
Good sales performance but capacity limiting further growth.
Going for growth with disciplined capital expenditures
Strong cash generation allows good dividend distribution

6. 2Q03 Gross Revenues US$ 1,219 million
Sales revenues and adjusted EBITDA
2Q03 Gross Revenues US$ 1,219 million
2Q03 Adjusted EBITDA
By product
By market
US$ 490 million

7. Good sales performance
2Q03 vs 2Q02
41.5 million tons
6,900 million NTK

8. A strong and stable operational performance
Adjusted EBIT margin

9. A good relative performance in the mining and metals industry
Market Cap as of August 14, US$ billion
1H 03 Net Earnings US$ million
Source: Bloomberg LP and companies reports

10. A consistent strong cash generation
LTM Adjusted EBITDA US$ million

11. Iron ore and pellets
Shipments constrained by mining and logistics capacity
million tons
44.0
42.3
42.5
41.1
41.6
38.3
38.0
38.0
36.7
34.4

12. Railroad transportation reached an all time high in 2Q03
million ntk
6,900
6,137
5,908
5,856
5,669
5,622
5,505
5,207
5,233
4,961

13. CVRD is investing in projects with low capex costs and high risk-adjusted expected rates of return
Estimated
Product Capacity Estimated CAPEX
Projects 1,000 tons/year Conclusion US$/ton
Iron Ore
Brucutu ,
18,
Fabrica Nova ,
15,
Carajas ,000 1Q
Gongo Soco / Itabira 3,500 1Q
Bauxite
Paragominas I 4,500 1Q
Alumina
Alunorte Stages 4 and 5 1,800 1Q
Copper
Sossego 140 2Q04 2,434.00
Potash
Taquari Vassouras 250 3Q
Power Generation
Candonga 140 MW 4Q *
Aimorés 330 MW 4Q *
* US$ / Kw
Greenfield Brownfield

14. Dividend payment on top of minimum dividend
Minimum dividend of US$ 1.04 paid in two equal installments of US$ 0.52 per share
April 30, 2003
October 31, 2003
Additional dividend of US$ 0.65 per share to be paid on October 31, 2003.

15. A good dividend story 1999-2002 Average dividend per share US$ 1.57
Average dividend yield 7.0%
2003
Dividend per share US$ 1.69

16. Preservation of a sound balance sheet is a key strategic issue

17. Fund raising and cost of capital

18. Issuing debt in a volatile bond market environment
US$ 250 million notes due 2013, backed by iron ore & pellets export receivables
Yield to maturity 4.48%, duration 5.38 years
Guaranteed by MBIA Insurance Corporation
Rated AAA Standard and Poors, Aaa Moody’s, AAA Fitch Ratings
US$ 300 million unsecured notes due 2013
Yield to maturity 9.250%, duration 6.77 years
Rated Ba2 Moody’s
Spread to US Treasury: +479 bps
Spread to Brazilian Sovereign: -333 bps

19. Issuing debt in a volatile bond market environment
Transactions priced amid high volatility in the Treasury market, with the 10-year UST reaching its highest yield since July 2002
Transactions contribute to lengthen debt duration at relatively low costs

20. CVRD 2013 is trading through the Brazilian sovereign debt curve
YTM
CVRD WACC must be reassessed
Brazil Global 2013 %
CVRD 2013
Source: JP Morgan Securities

21. Macroeconomic and business outlook

22. Business environment starting to improve
Global GDP is growing at a rate below its long term trend
However, US GDP grew faster than expected in 2Q03 and some leading indicators are providing signs that a recovery may be starting to take hold
SARS epidemic is over and the Chinese demand for minerals and metals was unscathed. It continues to drive global markets
Metals prices are already factoring the change in expectations

23. Global iron ore demand is on a rising trend
CRU Seaborne Iron Ore index
Index value (Jan 1998=100)
Source: CRU

24. Brazil-Japan and Australia-Japan freight rates differential
Freight rate differentials continue to issue signals of excess demand for iron ore
Brazil-Japan and Australia-Japan freight rates differential
07/03
iron ore price increase
9% price increase
2-digit
iron ore price increase
iron ore price increase
2-digit
iron ore price decrease
Source: Clarksons

25. China’s quest for high Fe iron ore
As a supplier of high Fe iron ore, CVRD has a high growth potential in the Chinese market %
Pig iron Imported irona Average
output growth ore share Fe contentb 1H
a: imported iron ore/ total iron ore supply
b: average Fe content of total supply
Sources: The Tex Report and CVRD

26. Debottlenecking iron ore
Working hard to anticipate capacity expansion in iron ore mining and logistics
2004
Pier III – Ponta da Madeira maritime terminal – Northern System shipping capacity increases from 56 million to 74 million tpy
Carajás brownfield expansion – from 56 to 70 million tpy
Southern System – brownfield expansion – net increase of 3 million tpy

27. Iron ore prospects
We estimate global seaborne demand for iron ore to reach 515 million tons in 2003, against 480 million tons in 2002
We believe that the current shortage will continue throughout 2004
We expect a modest increase in CVRD shipments in 2003 due to capacity constraints. However, growth will resume in 2004 with the commissioning of brownfield expansions
For the long term, we estimate seaborne trade to grow in line with the global GDP long run trend (3.6% per year)

28. Alumina Prospects
World consumption is growing faster than production, with smelter expansions outpacing the growth in refinery capacity
As a consequence, spot prices stabilized in a range of US$ 280 – 300 per ton
We believe that market conditions will remain very tight for the next 18 months with spot prices starting to feed through into contract pricing
As announced capacity conditions are brought online, refineries utilization rates are expected to drop from 95% (2003/04) to 92% (2005/07) still representing a tight market
Alunorte capacity expansions will allow CVRD to benefit from the exposure to this scenario

29. Logistics Prospects
Steel and grains were the main drivers of the demand for our logistics services
Services for the building materials industry and intermodal transportation are showing high growth rates
Delivery of orders for locomotives and wagons will allow us to accelerate growth

30. CAEMI Consolidation
Consolidation into CVRD US GAAP financial statements will start in 3Q03
Pro forma highlights for 1H03 (CVRD+CAEMI)
Iron ore & pellet sales million tons
Iron ore sales to China million tons
Kaolin sales 537,000 tons
Adjusted EBITDA US$ 1,067 million
Total debt US$ 3,585 million
Total debt/ LTM EBITDA 1.67x

31. CVRD - The Best of Brazil